Seamlesswear specialist Delta Galil has reported a 40% increase in net income for its second quarter, boosted by stronger sales across its private label business. Reporting net income in the second quarter of $21.0 mn, up from $15.0 mn in the second quarter last year, the circular knitter also reported significant growth from its Florence by Mills and Organic Basics brands.
Sales in the quarter were $471.4 mn, a 6% increase from $443.6 mn in the same period last year whilst first-half sales hit $922.2 mn, a 4% increase from $886.0 mn in the prior-year period.
Commenting on the results, Isaac Dabah, CEO of Delta Galil, said: “This was another strong quarter for Delta Galil, highlighted by record second-quarter DTC sales, growth in our Private Label sector, and significant expansion in profitability.
“Our strategic initiatives, aimed at enhancing operating efficiencies and realigning our manufacturing capabilities, have led to a record second-quarter gross margin of 41.9%, marking the fourth consecutive quarterly record of gross margin.”
Dabah said Delta Galil was “particularly excited” about the launch and expansion of key brands such as Florence by Mills and Organic Basics.
These launches, amongst others, are expected to position the company for consistent, long-term growth, he said, adding that the continued strength of Delta Israel Brands, marked by a 23.2% year-over-year increase in second quarter retail same-store sales and the successful launch of Bath and Body Works and Victoria’s Secret in Israel, underscored its growing momentum.
“I am excited with the direction Delta is headed, as we benefit from a diversified portfolio and strategies focused on driving sustainable profitable growth,” Dabah added. “Our continuous commitment to product innovation continues to fuel growth for both our private label customers and our brands, creating a powerful flywheel of market and consumer insights that we believe will continue to support profitable growth in both pillars.”
